1. What is the Personal Loan Payment Formula?

The Personal Loan Payment Formula calculates the fixed monthly payment required to repay a loan over a specified term. This formula is commonly used for HDFC Life-linked personal loans and other installment loans.

2. How Does the Calculator Work?

The calculator uses the loan payment formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (term in years × 12)
• \( PMT \) — Monthly payment amount (INR)

Explanation: The formula accounts for both principal repayment and interest charges, calculating a fixed payment that fully amortizes the loan over the term.

3. Importance of Loan Payment Calculation

Details: Accurate payment calculation helps borrowers understand their financial commitments, compare loan offers, and budget effectively for HDFC Life-linked personal loans.

4. Using the Calculator

Tips: Enter the principal amount in INR, annual interest rate in percentage, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this calculator include HDFC Life insurance premiums?
A: This calculates only the loan payment component. Insurance premiums may be additional - consult your HDFC Life policy details.

Q2: What's a typical interest rate for HDFC Life-linked loans?
A: Rates vary based on credit profile and policy terms, typically ranging from 10% to 18% annually.

Q3: How does loan term affect payments?
A: Longer terms reduce monthly payments but increase total interest paid over the loan life.

Q4: Are there prepayment options for these loans?
A: HDFC Life-linked loans may allow prepayment, often with applicable charges. Check your loan agreement.

Q5: How accurate is this calculator?
A: It provides standard payment estimates. Actual HDFC Life-linked loan terms may include additional fees or variations.